The real estate market is constantly shifting and evolving. If you’re planning to enter the Bellevue real estate market in the coming year, you likely have questions about how the market has been performing and what it may do in the short-term future. We’ve compiled a list of frequently asked questions that summarize the current state of the market and offer expert predictions for what the coming months may have in store.
If you don’t see the information you’re looking for here, contact Kathryn Lister — she’d be happy to speak with you.
What is the local market doing now?
Recently, the Bellevue market has entered a slight recession. Home prices are down from where they were one year ago, and most homes end up selling for a price slightly below listing. However, they often don’t spend more than two weeks on the market before going under contract. There are some homes that attract greater interest, and these homes may receive multiple offers above asking and go under contract in a matter of days.
What is affecting home prices?
Over the past few years, home prices have soared to astronomically high levels. Dropping interest rates incentivized more buyers to test the market, which led to an increase in supply not matched by rising demand. The result was a more favorable market for sellers, who were able to command higher prices for their homes. However, many experts predict that we will see a slight recession in 2023. Interest rates have climbed to higher levels than where they were in early 2020, and rapidly rising inflation has put a strain on many families’ budgets. If a recession does occur, it’s unlikely that it will reflect anything close to what happened in 2008.
Why does Bellevue appeal to so many people?
Bellevue offers a suburban lifestyle that’s in close proximity to Seattle. It’s often regarded as one of the best mid-size cities in the US. The Bellevue cost of living, while above the national average, is comfortably below what it costs to live in Seattle. And because Bellevue is gaining popularity and population, its real estate, while relatively expensive, may appreciate in the coming years. The climate is always pleasant throughout the year, and there is an abundance of parks and recreational areas. And the public schools tend to receive high ratings, making Bellevue a great choice for young families with children.
When is the best time to sell my home?
The housing market usually heats up in the late spring and early summer. By this time, most people have received tax return refunds and have extra money to help fund their down payment. In addition, families often like to move soon after their children finish school so they have the summer months to settle into their home before school starts again. Sellers often report receiving higher offers for their homes during these months. If you’re thinking about selling your home in 2023, consider having it ready to list by late March so that you can take advantage of these busier months.
When is the best time to buy a home?
The market usually slows down significantly in August and cools off in September. By this time, most people are distracted by extracurricular activities or preparing for the upcoming holidays. Homes sell during all twelve months of the year, but you’ll see more price drops and longer market stays during October, November, and December. If you’re moving to Bellevue during this timeframe, you will likely face less competition and potentially secure a better deal.
Will 2023 be a good year to buy?
Since prices aren’t expected to rise much in 2023 — if at all — this year can be a great time to buy a home. Although prices are expected to stall and may even drop slightly, it’s unlikely that they fall by a significant percentage. In addition, with inflation and interest costs expected to rise further, you may spend more to purchase a home next year even if the price of the home itself isn’t any higher. If you’re thinking about buying in 2023, the best thing you can do to prepare is to speak with a lender. Your lender will help determine what you can afford to spend on a home, and may even give you a pre-approval letter to share with the seller when you’re negotiating a deal.
Will 2023 be a good year to sell?
Although 2023 may not be as profitable as 2021 and 2022, sellers should still expect to command a good return on their homes. After all, prices are expected to remain higher than they were before the pandemic. Moreover, the Bellevue cost of living is closely tied to housing prices, so the many people moving to Bellevue will be looking to pounce on houses like yours, even at high prices. If you plan to sell in 2023, start by thinking about the listing price, and ask your realtor to run a comparative market analysis. This will give you an idea of where to price your home based on the prices that similar homes in your area have received over the past several months.
Who can help me buy or sell my home?
Many people find it easier to navigate the real estate market when working with an expert who lives and breathes the market daily. Kathryn Lister is a prestigious Bellevue real estate agent with over twenty years of experience buying and selling homes in the area, and she has been honored with several awards. Her wisdom and insight about the current state of the Bellevue real estate market will be a tremendous asset as you prepare to buy or sell your home. Contact her when you’re ready to take the next step.
*Header photo courtesy of Unsplash